The smiles of gold investors turned to tears following the results of the FOMC policy meeting which saw interest rates rise by 75 basis points for the fourth time in a row.
The yellow metal traded weakly at around $1,640 an ounce in the Asian session, up slightly from its earlier low of $1,631 an ounce.
Initial market reaction showed a volatile move in gold which initially jumped above 1% as soon as the results were announced and there were signs of smaller moves in policy-setting to come.
However, Powell's statement returned the price of gold to sink lower where he said it was too early to assume the Fed would pause for a moment in raising interest rates.
In fact, he also said that the ultimate level of interest rates will likely be higher than previously expected, with investors now seeing them rise to 5% or higher.
As a result, gold sank further while the US dollar, which initially plunged, rose again.
